Energean terminates USD 945 mn sale of Mediterranean assets to Carlyle

Energean will be keeping hold of its Egyptian assets — for now at least — after the LSE-listed oil and gas company decided to cancel its sale and purchase agreement with global investment firm Carlyle for its assets in Egypt, Italy, and Croatia, according to a statement (pdf) from Energean. The USD 945 mn sale would’ve seen Carlyle use the acquisition to form a new Mediterranean-focused oil and gas company chaired by former BP CEO Tony Hayward.

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The decision came after Carlyle missed a 20 March deadline to secure the necessary approvals, which the statement lists as the customary regulatory approvals from Egypt and Italy, in addition to antitrust approvals from the countries and the Common Market for Eastern and Southern Africa — more commonly known as Comesa. The two companies were not able to agree to extending the deadline.

Energean saidlast week that the agreement could be terminated. At the time, Energean’s CEO Mathios Rigas stressed that if the transaction was canceled, the company would “assess all strategic options, focusing, as always, on the best interests of our shareholders keeping in mind the need for diversification, scale, dividend accretion and growth.”

The sale would’ve seen Energean receive more than three times the USD 284 mn that it paid to buy the assetsfrom Edison in 2020. Energean’s Egyptian-producing assets include a 100% stake in the Abu Qir concession — one of Egypt’s largest. The company also has complete ownership of its under-development North East Almreya and North Idku concessions, along with a 50% stake in the exploratory East Biur El Nus concession and 30% share in the exploratory North East Hap’y concession, according to the company’s website.

“Italy, Egypt, and Croatia will remain core pillars of our operations, and we look forward to driving further investment, development, and value creation in all countries,” said Rigas. The head of the company added that “our commitment to the Mediterranean and the wider region is unwavering, and we will continue to expand our portfolio, support energy security, and deliver sustainable growth in the years ahead.”

Energean will let us all know the new plan for the collection of assets shortly, when it gives a strategy update in its May Trading Statement and Operational Update, the company said.

Market reax: Energean shares rose 3.68% on Friday following the news to close at GBP 8.73.

The international press also picked up the story: Reuters.